Penang-based developer Aspen Group Holdings Ltd’s venture into the gloves industry will pay off well from next year as it completes the building of the manufacturing facility in Penang.
Aspen, which is listed on Singapore’s Catalist board and is the co-developer of Aspen Vision City at Batu Kawan on mainland Penang with IKEA Southeast Asia expects the construction of its glove manufacturing facility to be completed by March 2021.
Its unit, Aspen Glove Sdn Bhd (AGSB), has submitted its application for the development order and building plan approval to the Kulim Municipal Council (KTPC) for the construction of the manufacturing facility at the Kulim Technology Park.
Aspen said the piling works of the manufacturing facility is expected to commence by September 21 this year upon shareholders’ approval of the proposed diversification.
“The overall construction of the manufacturing facility is slated for completion in March 2021,” it said in a statement.
Aspen is teaming up with CMY Capital Sdn Bhd, an investment holding firm controlled by businessman and property magnate Tan Sri Chua Ma Yu, and another investor Iskandar Basha Abdul Kadir, to diversify into the manufacture and distribution of rubber gloves.
In the six months to June 30, 2020 (1H FY2020), Aspen reported lower revenue of RM108 million primarily due to the implementation of the Movement Control Order (MCO) by the Malaysian government to curb the spread of the Covid-19 infection in the country.
Aspen said in a statement last month that the group’s ongoing projects Vertu Resort, Beacon Executive Suites, and Vivo Executive Apartment experienced downtime due to the MCO.
Despite the subdued market sentiments, Aspen recorded incremental sales during the year.
The group’s revenue was derived from the progressive construction of Vertu Resort, which contributed RM83 million in 1H FY2020 and new sales, it said.
Vertu Resort is the first resort-inspired high-rise development at Batu Kawan, with a gross development value of RM620 million. This is the second phase (and the first residential development) in Aspen Vision City.
It was reported that the project comprises units that are priced between RM350 and RM380 per square ft and is slated for completion this year.
Aspen said the construction of Beacon Executive Suites is progressing on schedule and the group had recorded a revenue of RM13 million from the project in 1H FY2020.
“In line with the Home Ownership Campaign, the Penang state government has announced a reduction in ceiling price for the purchase of Penang properties by foreigners. The group sees this as an opportunity to further promote its projects to the foreign market as foreign buyers will now have a lower entry point to invest in the Penang property market.
“Although there is restriction on international travel, demand from the Hong Kong market did not subside,” it said.
Aspen said it is in discussions with several third parties about new revenue streams and joint ventures.